Federal funding for 50 infrastructure projects pulled after cost blowouts

An overhaul of the Commonwealth’s $120bn infrastructure pipeline will gut funding for 50 road, car park and rail projects across the country.

An overhaul of the Commonwealth’s $120bn infrastructure pipeline announced by the Albanese government will gut funding for 50 road, carpark and rail projects across the country, after a review revealed $32.8bn in cost blowouts.

With a multitude of projects affected by cost blowouts due to worker shortages, supply chain constraints and high inflation, the move will divert approximately $7bn of savings to deliver existing projects, with the total infrastructure spend to remain unchanged.

The funding announcement follows the release of the government’s review of Commonwealth infrastructure.

The review, unveiled by Infrastructure Minister Catherine King in Canberra on Thursday, found the former government’s approach did not reflect “current market capacity”, given infrastructure expenditure is projected to continue growing.

Fifty projects would be cut, Infrastructure Minister Catherine King said, but overall funding would not be reduced. Picture: NCA NewsWire / Martin Ollman

NSW will be the worst hit by the infrastructure overhaul, losing 17 projects, including highways, bypasses, and three controversial commuter carparks.

In Victoria, a dozen projects will be starved of federal funding, including the Geelong Fast Rail and a scoping study for the Melbourne Inland Rail Terminal, alongside several road transport projects.

Federal funding for five projects in both South Australia and Western Australia will be slashed, with one project axed in the ACT and Tasmania.

Funding for nine projects in the Sunshine State has been cut, with funding for a further five projects, including the Sunshine Coast Light Rail, ringfenced until a feasibility study is completed.

But the move was slammed by several state ministers, including Queensland Treasurer Cameron Dick, who called on Ms King to retract the cuts.

Queensland Treasurer Cameron Dick has lashed Infrastructure Minister Catherine King for cutting federal funding to nine projects in his home state. Picture: Dan Peled / NCA NewWire

“Our government has not and will not co-operate to support Catherine King’s cuts,” Mr Dick said in a post to X following Ms King’s announcement.

“Our message to Catherine King: Treat Queensland more like Qantas and less like Qatar.”

Nationals leader David Littleproud also criticised the announcement, claiming that consumers would pay higher prices at the supermarket checkout as a result of the project cuts.

“If we don’t have the arterials that get our produce to your plate, then you’re going to pay more,” he said.

“This is a stitch-up on regional, rural and remote Australia in what has been … a callous act by the Albanese government.”

Nationals leader David Littleproud claimed Australians would be faced with an increasing grocery bill as a result of the 50 project cuts. Picture: NCA NewsWire / Martin Ollman

The review found $32.8bn worth of cost blowouts in the infrastructure program, with $14.2bn worth of increased costs arising from projects that had not even started.

New projects not in the pipeline will preferably be funded on a 50-50 split between the Commonwealth and state and territory governments.

“It is an opportunity for the states to join us in investing more in the regions and being co-investors, not lesser investors,” Ms King told reports in Canberra on Thursday.

Ms King said that many of the projects committed to by former Coalitions governments had not been properly planned for.

“It is clear that the previous government deliberately set about announcing projects that did not have enough funding and they knew could not be delivered.”

Alongside the project cuts, Ms King announced 35 existing projects would receive almost $7bn in additional funding due to cost overruns.

The review recommended funding for 82 projects should be cut; however 32 of these still went ahead. The government will not reveal what these projects are.